Unbiased • Specialist • Established
Services: First Time Buyers
First Time Buyer Mortgages
Buying your first home can be a daunting prospect. Not only does the process seem really confusing but there’s tonnes of jargon that go along with it.
We’re here to make it super simple and help you smash your mortgage application first time.
First time buyers are able to access the very same deals as home movers.
Actually, first time buyers are sometimes able to access deals that aren’t even available to home movers. This often comes in the form of exclusive FTB deals that have no valuation fees, lower rates and even cashback.
Have a look at some of the mortgage scheme’s available to first time buyers below.
5% Mortgage Guarantee Scheme Mortgages
– Available from 19th April 2021, the government backed scheme allows first time buyers & homemovers the chance to buy their new home with just a 5% deposit.
– This is a great opportunity for people who are finding it difficult to get 10%– 20%+ deposit together.
– These mortgages work exactly the same as a standard, residential mortgage. The lender will do a full affordability assessment to see if you can support the 95% mortgage. So you may become unstuck if your income won’t allow you to borrow 95% of the property value. Just a heads up!
Help to Buy: equity loan scheme
The Help to Buy Equity Loan Scheme is designed exclusively for FTB’s. So if you’ve owned a property before, this one unfortunately isn’t for you.
So here’s how it works;
– You put down a 5% deposit.
– The government in turn provides a 20% loan towards your deposit.
– This means you get a mortgage on the remaining 75%. Makes sense?
– This scheme is available on new builds only.
Remember, the 20% loan from the government is a loan. So you have to pay it back. It’s interest free for the first 5 years, then charges will start to apply. Or you can repay the loan from your sale process if you sell your house.
Please find more info here; https://www.helptobuy.gov.uk/equity-loan/equity-loans/
